MathStar Announces Third Quarter 2007 Financial Results
HILLSBORO, Ore., Nov. 7, 2007 -- MathStar, Inc. (NASDAQ: MATH), a fabless
semiconductor company specializing in high-performance programmable logic, today
announced results for its third quarter of 2007, ended Sept. 30, 2007. Revenues
in the third quarter were $63,000, compared with $28,000 in the same period last
year. During the three months ending Sept. 30, 2007, the company completed and
invoiced the first phase of a multiple element arrangement for $78,000. The
amount was not recognized as revenue during the quarter as not all of the
criteria for revenue recognition were met. The company will recognize the full
value of the arrangement, totaling $156,000, upon completion of the remaining
elements, which is expected to occur in the fourth quarter.
Net loss per share was $0.10 in the third quarter of 2007, compared with a loss
of $0.39 per share in the same quarter a year ago.
"We are starting to see the revenue ramp on our Arrix(TM) FPOA products" said
Doug Pihl, president and chief executive officer. "We believe that 2008 will be
the year we prove to the programmable logic market that a new player has
arrived," he said.
For the quarter ended Sept. 30, 2007, research and development expenses
decreased $1.6 million or 38 percent to $2.7 million, from $4.3 million reported
in the same quarter a year ago. The decrease was a result of reductions in
engineering material of $1.3 million due to the tapeout of the Arrix chip last
year, combined with lower outside development costs and lower administrative
costs. The decrease was partially offset by the increase in employee related
expenses.
Selling, general and administrative expenses decreased $0.4 million or 16
percent to $2.2 million, compared with $2.5 million in the same quarter a year
ago. The decrease was a result of lower non-cash charges related to restricted
stock issued in earlier periods offset by increased employee recurring charges.
The company will present a full business update during a conference call today,
Wednesday, Nov. 7, at 1:30 p.m. PST. To listen to the call, please dial
303-262-2050 or 800-257-6607 (toll free). A replay of the call will be available
on the company's website at http:// www.mathstar.com.
About MathStar, Inc.
MathStar is a fabless semiconductor company offering best-in-class, high
performance programmable logic solutions. MathStar's Field Programmable Object
Array (FPOA) can process arithmetic and logic operations at clock rates at 1
gigahertz, which is up to four times faster than even the most advanced FPGA
architectures in many applications. MathStar's Arrix family of FPOAs are
high-performance programmable solutions that enable customers in the machine
vision, high-performance video, medical imaging, security and surveillance and
military markets to rapidly and cost effectively innovate and differentiate
their products. FPOAs are available now and are supported by development tools,
IP libraries, application notes and technical documentation. For more
information, please visit www.mathstar.com.
Statements in this press release, other than historical information, may be
"forward-looking" in nature within the meaning of Section 21E the Private
Securities Litigation Reform Act of 1995 and are subject to various risks,
uncertainties and assumptions. These statements are based on management's
current expectations, estimates and projections about MathStar and its industry
and include, but are not limited to, those set forth in the section of
MathStar's Annual Report on Form 10-K filed with the Securities and Exchange
Commission on March 14, 2007 under the heading "Risk Factors." MathStar
undertakes no obligation to update any forward-looking statements in order to
reflect events or circumstances that may arise after the date of this release.
MathStar, Inc.
Condensed Balance Sheet
(Unaudited)
(in thousands)
December 31, September 30
2006 2007
------------- -------------
Assets
Current assets
Cash and cash equivalents $ 12,891 $ 14,283
Restricted cash 103 106
Investment Securities - short term 14,250
Accounts receivable 14 144
Inventory 610 702
Prepaid expenses and other current assets 1,231 796
------------- -------------
Total current assets 14,849 30,281
Property and equipment, net 487 430
Investment Securities - long term -- 5,431
Other assets 278 454
------------- -------------
Total assets $ 15,614 $ 36,596
============= =============
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $ 1,791 $ 410
Deferred revenue -- 162
Accrued expenses 1,206 1,216
------------- -------------
Total liabilities 2,997 1,788
------------- -------------
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.01 par value; 10,000 shares authorized;
no shares issued and outstanding -- --
Common stock, $0.01 par value; 90,000 shares authorized;
20,922 and 45,907 shares issued and outstanding at
December 31, 2006 and September 30, 2007, respectively 209 459
Additional paid-in capital 118,545 154,881
Accumulated deficit (106,137) (120,532)
------------- -------------
Total stockholders' equity 12,617 34,808
------------- -------------
Total liabilities and stockholders' equity $ 15,614 $ 36,596
============= =============
MathStar, Inc.
Condensed Statements of Operations
(Unaudited)
(in thousands except for per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2006 2007 2006 2007
-------- -------- -------- --------
Revenue $ 28 $ 63 $ 46 $ 275
Cost of goods sold 21 58 27 181
-------- -------- -------- --------
Gross margin 7 5 19 94
-------- -------- -------- --------
Operating expenses:
Research and development 4,267 2,655 10,293 8,387
Selling, general and administrative 2,581 2,164 7,132 6,733
-------- -------- -------- --------
6,848 4,819 17,425 15,120
-------- -------- -------- --------
Operating loss (6,841) (4,814) (17,406) (15,026)
Interest income 112 426 462 652
Other income /(loss), net -- (5) -- (21)
-------- -------- -------- --------
Net loss $ (6,729) $ (4,393) $(16,944) $(14,395)
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Basic and diluted net loss per share $ (0.39) $ (0.10) $ (0.99) $ (0.47)
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Weighted average basic and diluted shares outstanding 17,259 45,907 17,112 30,405
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